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Acclimatizing India

Climate change seems inevitable. Risk takers who go long on property should check out locations in Canada, Siberia and Greenland. These hitherto frozen places are expected to become attractive relocation favourites in a rapidly warming world.

Collective action a distant dream

The international institutional architecture for concerted effort has been negligent in protecting future generations. The petty mindedness of the “haves”, particularly the United States, has been less than helpful. But it is not easy to make sacrifices today for the common good two generations hence. We Indians, spend our lives risk proofing our families. But even we baulk at collective action.

China and India evoked the spirit of collaboration at Paris, 2015

Nonetheless, both China and India were aligned with international concerns at Paris in 2015. China (10 per cent of world GDP), with aspirations of global leadership, seized the opportunity to showcase their responsiveness and sense of environmental responsibility versus the renegade behaviour of the US (18 per cent of world GDP). India, though not in the same league, with three per cent of the world GDP — per capita carbon dioxide emissions lower than most economies in our income class (lower medium) and with 25 per cent of the world’s 800 million chronically under-nourished people — bravely punched above its weight and pledged a massive programme of renewable energy.

We have gone too far to turn the clock back

If the science on climate change is right, the world is already warmer by 1ºC above the 1,850-1,900 level by 2011 and has used up two thirds of the envelope (1,900 against an allowable 2,900 gigatonnes of CO2) of cumulative emissions to contain temperature rise to 2ºC. Annual emissions are 36 gigatonnes of which 40 per cent remains in the atmosphere, 30 per cent is absorbed by the sea which warms it and the residual 30 per cent is captured by land and plants. By 2050 we would have used up our CO2 emissions limit.

Thereafter, we will be on track to a temperature rise between 3.7º to 4ºC by 2100. Our actions cannot avoid global warming. But they can mitigate the scale of the increase and the associated suffering. Heat will destroy genetic diversity and trigger migration to cooler climes, water scarcity will constrain food crops, warmer and more acidic seas will denude coral reefs and marine food resources and sea level rise will submerge low islands and coastal areas.

Mitigation scuttled by growth and consumption concerns

The Paris Agreement 2015 was about containing temperature increase to 2ºC. It was less an agreement and more a voluntary, collective expression of what each country could do. And clearly that was not enough. Seeking a more rigid agreement would have meant having no agreement at all. Envirocrats abhor not tabling some results. So instead of less CO2 we were sold plans and forecasts.

At the heart of the matter is the trade-off between retaining developed economy consumption standards and in the poor economies, growth prospects versus sustainability. But in a fractious world order today no great power exists which has the capacity or the incentive to mitigate the pain of others. The US is looking inwards, Europe and Japan are ageing and China is still only an upper-middle income country although with cash to spare.

Marginal behavioural change and new technology can cut emissions to net zero

Globally, 40 per cent of emissions are on account of petro-based transportation and coal-based electricity generation. Electric cars, buses and trucks and the charging infrastructure to match might become commercially available by 2030-2040. It will not be a day sooner. Eliminating the rearing of livestock for Beef can cut down on water depletion and one half of carbon emissions in the US. A ban on Beef seems desirable. Meat eaters can go on eating pork, chicken or goat and eggs. For milk turn to soya.

The sustainability objective is to reduce emissions by 45 per cent by 2030 and to zero emission levels by 2050. Emission reduction at this scale would require the complete abandonment of coal-based electricity generation by 2050. That prospect is scary for countries, like India, where the coal economy provides relatively better paid employment concentrated in eastern India. Large swathes of population still live in darkness without electricity — and not just in the far-flung rural areas. Climate change is not all pain. It is expected to improve precipitation in India by three to 12 per cent. But this comes at the cost of less water in snow-fed Himalayan rivers.

Adaptation anyone?

Sanjeev Sanyal — a government economist — stresses that adaptation is the key to survival. Mitigation is a humungus task with uncertain results from collective action by sovereigns. Don’t forget African growth is yet to take off and India itself has not plateaued. Adaptation is even harder than mitigation because mitigation can make fresh spending on adaptation redundant. For capital starved developing countries beset with current problems spending on future problems in impractical.

Drivers of success

First, ensuring sustainability is a classic public good because private actions can never monetise the positive spillovers of their effort and private polluters have no incentives to become responsible without strict regulation. This means the government must view public allocations and tax incentives through the sustainability lens. Consider that the plan to grow bio-fuels is a big no-no. It will strain land and water resources which should instead be allocated to food or forests. Denuded forests must be revived and the decentralised greening of all habitats pursued with vigour.

Ignore carbon capture and storage options at your peril

Second, industrial scale carbon capture and storage (CCS) is an innovative approach for coal-dominated economies. Currently India is peripheral to the CCS technology dialogue, where the US, Canada and Norway lead. China’s first CCS unit will be operational by 2020. The global target is to capture three per cent of annual CO2 emissions (two gigatonnes) by 2020 and seven per cent (seven gigatonnes) by 2050.

Step up R&D on battery storage

Third, India missed the bus on manufacturing solar modules and panels. But manufacturing efficient storage batteries is the new frontier we cannot ignore for harnessing the full economic benefits from scaling up solar energy.

Decentralise to use local innovation energy for small but high impact projects

Fourth, decentralising the emissions control programme can tap into local cultural practices which promote sustainability. Frugal innovation in water catchment, storage and management and renewable energy generation and use must be incentivised to create green, local employment and benign outcomes. Genetic engineering of crops to make them drought resistant can protect farmer income, enhance productivity and free up land for water storage and enlarging forest cover.

Multiple objectives are the bane of all government programmes. But sustainable growth should be at the top of this long list.

Adapted from the author’s opinion piece in The Asian Age, October 24, 2018 http://www.asianage.com/opinion/columnists/241018/acclimatising-india-to-the-future.html

Published by Sanjeev Ahluwalia

Sanjeev S. Ahluwalia is currently Advisor, Observer Research Foundation, New Delhi and an independent consultant with core skills in economic regulation, institutional development, decentralization, public sector performance management and governance. He is an Honorary Member of the TERI Advisory Board and a Honorary Member of the CIRC Management Committee. He was a Senior Specialist with the Africa Poverty Reduction and Economic Management network of the World Bank for over seven years, 2005-2013. He has over a decade of experience at the national level in the Ministry of Finance, Government of India as Joint Secretary, Disinvestment from 2002 to 2005 and earlier in the Department of Economic Affairs in commercial debt management and Asian Development Bank financed projects and trade development with East Asia in the Ministry of Commerce. He was also the first Secretary of the Central Electricity Regulatory Commission from 1999 to 2000. He worked in TERI as a Senior Fellow from 1995 to 1998 in the areas of governance and regulation of the electricity sector and institutional development for renewable energy growth. Previously he served the Government of Uttar Pradesh, India in various capacities at the District and State level from 1980 onwards as a member of the Indian Administrative Service. His last job was as Secretary Finance (Expenditure management) Government of UP from 2001 to 2002. He has a Masters in Economic Policy Management from Columbia University, New York; a post graduate Diploma in Financial Management from the Faculty of Management Studies, Delhi University and a Masters in History from St. Stephens College, Delhi.
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